Changes to Credit

You have likely heard

About the new credit card regulations and legislation



The Credit Industry is changing, but our commitment to you is not.

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As a valued customer of The Home Depot, we believe it is important to help you understand and navigate upcoming changes that will be impacting the credit industry. You've likely heard about some of these changes that are a result of the recent passage of the Credit Card Accountability, Responsibility and Disclosure Act (The Credit CARD Act) and related regulatory changes. These changes, most of which will take effect in February, 2010, will apply to all consumer credit card products, including cards issued through retailers like The Home Depot. That's why we're providing information, education, and support to help you stay informed and maintain healthy credit in this ever-changing economic environment  

Changes will be noticed in a few key areas, including: 1) promotional offers, 2) statement design and 3) payment allocation. As implementation of these changes draws closer, we will provide more detail on this site, so please check back for additional information. For a summary of additional changes under the Credit CARD Act please go to www.newcreditcardlaws.citicards.com.

Changes to promotional offers: one of the new related regulatory changes will require minimum payments on all 'No Interest' promotions

  • Starting February 22, 2010, all new 'No Interest' promotional offers on The Home Depot Consumer Credit Card will require minimum monthly payments. 
  • This change will not affect any previous 'No Interest, No Payment' promotional purchases that did not require minimum payments and were posted to your account prior to February 22, 2010. 
  • Any eligible purchase posted to your account on or after February 22, 2010 will receive 'No Interest' under the terms of those promotions and will require a minimum monthly payment.

FAQ's About Promotions with Minimum Payments

Will I be required to make multiple payments in a month?

No. Any and all minimum monthly payments on your account will be added together and will be due together as a single payment on the same due date each month.

How much are my monthly payments?

The Minimum Payment Due is calculated as follows - the past due amount is added to any additional amount specified in a promotional offer, then the largest of the following is added:

  • The Calculated New Balance if it is less than $10;
  • $10 if the Calculated New Balance is at least $10;
  • 1% of the Calculated New Card Balance (revolving plus promotional balance) plus your billed interest charges and any minimum interest charge on the Calculated New Balance and any applicable late fee (the result is rounded up to the nearest dollar). For this purpose, billed interest charges do not include interest charges that accrued during prior billing cycles on a deferred interest balance that ended during the billing cycle covered by the statement.


The Calculated New Balance equals the New Balance on the billing statement less any balances subject to either of two types of promotional terms. The first type are terms that do not require a minimum payment. The second type are terms that require an additional amount as part of the Minimum Payment Due. The Minimum Payment Due is never more than the Calculated New Balance plus any additional amount required by a promotional offer. In calculating the Minimum Payment Due, certain fees added to your account during the billing cycle may be subtracted from the New Balance.

What happens if I miss my minimum payment?

If you miss a required minimum payment, your account may be subject to a late fee per your Card Agreement. In addition, if you miss several consecutive payments you may lose the 'No Interest' benefit of your promotion and you will be notified if this is the case.

Why is this happening?

The minimum payment requirement for consumer credit card products that offer 'No Interest' promotions is now required by law.

What types of promotions could be offered and how will they work?

Effective February 22, 2010, the 'No Interest' promotions will include the following types of offers:

  • No Interest if Paid in Full in 6 Months; minimum payment required, $299 minimum purchase amount.
  • No Interest if Paid in Full in 12 Months; minimum payment required, $299 minimum purchase amount.
  • No Interest if Paid in Full by a specific date (for example, by December 31, 2010).


These promotional offers will include a minimum monthly payment requirement which will be included as part of the minimum payment due each month.

Changes to statement design: all credit card statements will be required to contain certain standardized information in a specific format.

Changes to payment allocation: all payments made in excess of your minimum payment due each month will be applied to balances in a standardized methodology.

The regulatory change will have some impact on the way your payment is applied.  Any amount paid in excess of your minimum payment due each month will be paid to your high interest balance first.  In many / most cases, this is consistent with how your payments have always been applied.  Additionally, there is a new exception in the 2-3 billing cycles at the end of a deferred interest promotion. During this time we will apply any payment in excess of your minimum payment due to your expiring promotion. This will ensure you continue to have the best opportunity to pay your promotional balances before expiration.  

Read FAQ's About How Payments will be Applied Under the new Regulations  

For more specific information on the new laws, visit these web sites:  

www.occ.treas.gov
www.federalreserve.gov  

You can continue to access your account online at myhomedepotaccount.com.